Case Studies For February 2014

Case Study #1

In Jan 2013, Mrs Lee* signed an option to purchase a 3-room unit for $335,000. The seller introduced her to an agent from a real estate agency. Mrs Lee wanted to buy the unit without any representation. However, the agent insisted and misled her into agreeing to a two-month extension without rental fees. The agent also did not inform her that the seller would not be paying the commission fees. Six months later, Mrs Lee received a letter of demand for commission payment of $3,584.50. She was unsatisfied and requested for a full waiver of the commission.

CASE negotiated with the agency and both parties eventually agreed to a $784.50 reduction of commission.

Case Study #2

In June 2012, Mr Luke* engaged a real estate agency for the sale and purchase of his house. It was agreed that the commission would be $13,600. However, the buyer of his house took legal action against the agent on false representation of the unit size. Mr Luke ended up appealing to HDB in order to complete the sale. After which, Mr Luke gave the agent the requested specifications for the purchase of the next property but the agent was unable to provide a property for viewing with the requested specifications. Mr Luke felt that the agent’s overall service was poor and not in his interests. He requested for a reduction of commission payable.

CASE invited both parties to go for mediation and both parties agreed to a reduction of $6,000 on the commission paid as the final settlement.

Case Study #3

Mdm Ling* engaged an agent to sell her property in Feb 2013. It was agreed that the agent would allow her family to have an extra two months to source for another property to move. However, there was a postponement in the 2nd appointment date. The agent did attend the subsequent meetings and there was no response despite Mdm Ling’s attempts to contact the agent. Mdm Ling was made to evict her property urgently after the appointment which resulted in extra cost incurred in transport, movers and rental of two months. Mdm Ling was dissatisfied and requested for a reduction in commission.

CASE invited both parties to go for mediation and both parties agreed to a reduction of 50% (i.e. $4,500) on the commission paid as the final settlement.

Case Study #4

In 2012, Mr Lum* expressed interest to sell his unit through a real estate agent. His initial asking price was $1,200,000. Mr Lum had specifically enquired about the last transacted (done) price for similar units and the agent informed him that the last transacted price was $1,150,000. Mr Lum subsequently realised that the last transacted price was $1,200,000and that he was misled by the agent. Eventually, he reached a private agreement with the buyer. However, the real estate agency filed a claim at the Small Claims Tribunals to claim for $10,000 in commission. Mr Lum disagreed and requested for mediation to resolve this matter.

CASE invited both parties to go for mediation and both parties agreed to a reduction of $2,000 on the commission paid as the final settlement.

Case Study #5

In Oct 2012, Ms Layla* engaged a senior realty advisor to sell her house. It was agreed that she would pay a commission of 2% after completion of the transaction. However, the advisor failed to provide her with the financial calculation. Thus, Ms Layla did not have enough funds to pay for the Cash On Value for her new unit. Ms Layla also found out that the advisor did not advise her that the option of purchase should be signed before the resale checklist. She requested for a reduction in commission.

CASE invited both parties to go for mediation and both parties agreed to a reduction in commission from $13,172 to $8,000as the final settlement.

 
*Please note that surnames have been changed to ensure the privacy of the consumers.

Should you find yourself in a similar situation, please do not hesitate to seek assistance from CASE. For general enquiries, you can call our hotline at 6100 0315 between 9am and 5pm from Mondays to Fridays and between 9am and 12pm on Saturdays. For an in-depth consultation with our officers, please visit us at 170 Ghim Moh Road, #05-01 Ulu Pandan Community Building, between 9am and 4pm from Mondays to Saturdays. You can also file a complaint online here.
This website's content is Copyright © CASE | Website Designed and Maintained By Elves Lab | Legal Notice | Privacy Policy